Taxpayers' responsiveness to tax rate changes and implications for the cost of taxation in Sweden

Hansson, Åsa

doi:10.1007/s10797-006-9007-7

Cited by 48 publications

(37 citation statements)

References 22 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The estimates for males are comparable with those previously obtained on Swedish data by Hansson (2007). She estimates a net-of-tax rate elasticity of 0.29 for males.…”

Section: Taxable Labor Incomesupporting

confidence: 86%

“…From different methodological perspectives Gelber (2008), Hansson (2007), Holmlund and Söderström (2007), Ljunge and Ragan (2006) and Selén (2005) all exploit large register data sets and study how mostly earned income reacts to changes in net-of-tax rates. However, none of these papers utilizes the Swedish Level of Living Survey and none of these make a separate analysis for hourly wage rates.…”

mentioning

confidence: 99%

See 1 more Smart Citation

Hourly wage rate and taxable labor income responsiveness to changes in marginal tax rates

Blomquist

Selin

2010

Journal of Public Economics

118

106

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Recently, a voluminous literature estimating the taxable income elasticity has emerged as an important field in empirical public economics. However, to a large extent it is still unknown how the hourly wage rate, an important component of taxable income, reacts to changes in marginal tax rates. In this study we use a rich panel data set and a sequence of tax reforms that took place in Sweden during the 1980's to estimate the elasticity of the hourly wage rate with respect to the net-of-tax rate. While carefully accounting for the endogeneity of marginal tax rates as well as other factors that determine wage rates we do find a statistically significant response both among married men and married women. The hourly wage rate elasticity with respect to the net-of-tax rate is estimated to 0.14-0.16 for males and 0.41-0.57 for females. In addition, we obtain uncompensated taxable labor income elasticities of around 0.21 for men and 0.96-1.44 for women. In contrast to earlier studies, we also find significant income effects for males. Accordingly, for males the compensated taxable labor income elasticity is about 4 percentage points higher than the uncompensated one. Terms of use: Documents inJEL Code: H24, J22, J31.

show abstract

“…The estimates for males are comparable with those previously obtained on Swedish data by Hansson (2007). She estimates a net-of-tax rate elasticity of 0.29 for males.…”

Section: Taxable Labor Incomesupporting

confidence: 86%

mentioning

confidence: 99%

Hourly wage rate and taxable labor income responsiveness to changes in marginal tax rates

Blomquist

Selin

2010

Journal of Public Economics

118

106

View full text Add to dashboard Cite

show abstract

“…The effects of the dual income tax on related issues as taxable income, demand for debt, tax progressivity, and choice of business organizational form, are studied by Aarbu and Thoresen (2001), Fjaerli (2004), Thoresen (2004), Thoresen and Alstadsaeter (2008), and Alstadsaeter and Wangen (2008) on Norwegian data. Similar studies are conducted on Swedish data by Selén (2002) and Hansson (2004), and on Finnish data by Kari (1999) and Pirttilä and Selin (2006). Different theories on the corporation's motivation for distributing dividends, as well as the effects of taxes, are presented in section 2 in this paper.…”

supporting

confidence: 62%

Neutral taxation of shareholder income? Corporate responses to an announced dividend tax

Alstadsæter

Fjærli

2009

Int Tax Public Finance

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The introduction of the 2006 Norwegian shareholder income tax was announced in advance, and it increased top marginal tax rates on individual dividend income from zero to 28 percent. We document strong timing effects on dividend payout on a large panel of non-listed corporations, with a surge of dividends prior to 2006 and a sharp drop after. Mature firms are more likely to pay dividends, and high asset growth increases the probability of retaining all earnings. Intertemporal income shifting through the timing of dividends seems to be a drain on internal equity and cause increases in the corporations' debt-equity ratios. The debt ratios drop sharply after the implementation of the reform. Terms of use: Documents inJEL Code: G32, G35, H24, H25.Keywords: neutral dividend tax, dual income tax, intertemporal income shifting, anticipation effects, corporate financial policy, transition. We have benefited from comments by Erling Holmøy, Vesa Kanniainen, Jukka Pirttilä, Arvid Raknerud, Hans Henrik Scheel, Joel Slemrod, Peter Birch Sørensen, and in particular, two anonymous referees. A special thank to Michael Riis Jacobsen for inspiring discussions on the neutrality of the shareholder income tax. We also thank seminar participants at Skatteforum Annette Alstadsaeter

show abstract

“…There are also recent examples (e.g. Hansson (2007) and Blomquist and Selin (2009)) on Swedish papers on the elasticity of taxable income. The responsiveness in taxable income can be viewed as a wider measure of labor supply.…”

Section: Introductionmentioning

confidence: 99%

The rise in female employment and the role of tax incentives. An empirical analysis of the Swedish individual tax reform of 1971

Selin

2013

Int Tax Public Finance

View full text Add to dashboard Cite

show abstract

Taxpayers' responsiveness to tax rate changes and implications for the cost of taxation in Sweden

Abstract: Tax reform, Elasticity of taxable income, Deadweight loss,

Cited by 48 publications

References 22 publications

Hourly wage rate and taxable labor income responsiveness to changes in marginal tax rates

Hourly wage rate and taxable labor income responsiveness to changes in marginal tax rates

Neutral taxation of shareholder income? Corporate responses to an announced dividend tax

The rise in female employment and the role of tax incentives. An empirical analysis of the Swedish individual tax reform of 1971

Contact Info

Product

Resources

About